The Washington state Senate passed a bill on Friday that would significantly lower interest rates on medical debt, but this is raising serious concerns about the survival of local hospitals.
Senate Bill 5993 seeks to drop the maximum interest rate from 9% to just 1% for debt started after 2026. While supporters say the bill provides much-needed relief for families, Republicans warn the plan could backfire on the very communities it tries to help.
Concerns over rising costs and hospital survival
State Senator John Braun (R-Centralia) led the opposition, arguing that the bill ignores the reality of how healthcare is funded
Braun pointed out that providing medical care isn’t free, and if hospitals can’t collect interest to cover their costs, those expenses don’t just disappear.
“The bottom line is, there is a cost when these medical services are provided, and the question is who’s going to cover the cost,” Braun said, according to KOMO NEWS. He warned that forcing rates down to 1% could push struggling medical centers over the edge.
A potential threat to local communities
One of the biggest concerns from critics is how the bill could affect healthcare in small towns. Braun emphasized that many hospitals in Washington are already in a fragile financial state. He argued that taking away this revenue could lead to facilities shutting their doors for good.
“We may lose a hospital, we may lose multiple hospitals,” Braun told KOMO NEWS. “I don’t think folks realize how close we are to that in many of our communities, and that would be tragic.” He suggested that instead of helping, the bill might actually force hospitals to raise prices for everyone else to make up the difference.
The legislation passed the Senate, with no Republicans voting in favor. The bill now heads to the Washington state House of Representatives for further review. If it passes, the new interest limits would take effect at the start of 2027.
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